The euro nudged ahead in early deals this morning although it could slip below the USD1.14 mark, as the dollar capitalises on the Fed's 25 basis points rate cut, according to dealers. At 0830, the single currency was trading at USD1.1437, while against sterling it was at STG0.6887. "Following the Fed's 0.25pc rate cut and its relatively upbeat assessment of the US economy, the dollar has continued to rally against other majors, with the euro looking vulnerable to a break below USD1.14 and the yen falling to a two month low in overnight trading," said Geraldine Concagh, senior economist with AIB Global Treasury.
"Over the last two weeks the growth story has taken over as the main driver of market sentiment. Thus, with the eurozone economy set to underperform the US, the euro has once again come under the spotlight and has lost about 4pc from its USD1.1935 peak," she added. She also said that sterling continued to be helped by the euro's slide against the dollar - reaching a 10 week high against the single currency yesterday. Data due for release today include US consumer sentiment for June, which could underpin the dollar's current upbeat tone. //www.fxcentre.com